Market announcement

Title

2011 12 months and IV quarter consolidated unaudited interim report

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Tallinn, Estonia, 2012-02-22 15:30 CET (GLOBE NEWSWIRE) --


MANAGEMENT REPORT

General information

AS Merko Ehitus operates in Estonia, Latvia and Lithuania as a construction
group offering complete solutions in the construction field. The largest
companies belonging to the group are SIA Merks (100%), UAB Merko Statyba
(100%), Tallinna Teede AS (100%), AS Gustaf (85%), OÜ Gustaf Tallinn (80%), AS
Merko Tartu (66%), AS Merko Infra (100%) and AS Tartu Maja Betoontooted (25%). 

Operating results

In 2011, the revenue of the construction group was EUR 219.3 million. Estonia
contributed 74.0%, Latvia 19.0% and Lithuania 7.0% to the group’s revenue. As
compared to 2010, the group’s revenue increased by +27.6%, including +30.5% in
Estonia, +242.0% in Lithuania and -3.3% in Latvia. 

Group’s revenue for Q4 2011 was EUR 65.9 million, which constitutes an annual
increase of EUR 20.3 million (+44.4%). 

As of 31 December 2011, the group’s portfolio on unfinished construction
contracts totalled EUR 166 million. The contract portfolio does not include
residential development projects developed by the Company and the works related
to construction of investment properties. 

In 2011, the group sold 159 apartments for EUR 18.2 million, (exclusive of
VAT). As of 31.12.2011, the inventories included 33 unsold apartments with a
total cost of EUR 2.7 million and 489 apartments in the stage of construction
with a total cost of EUR 22.8 million as of the balance sheet date. Of the
finished buildings 28 apartments are located in Tartu and 5 in Riga. At the
moment the group is building two apartment buildings (21 apartments in each) at
Hane Street in Tallinn (completion time summer 2012), three apartment buildings
(13 apartments each) at Pallasti Street in Tallinn (completion time summer
2012) and an apartment building with 133 apartments at Skanstese street in Riga
(completion time autumn 2012). An apartment building with 93 apartments at
Tartu road 50A in Tallinn was in finishing stage as of balance sheet date. 

Due to the fact that the rise in construction costs has been outpacing the rise
in the selling prices of real estate, the group has reassessed the
profitability of its development projects in Q4 2011 and revised downward the
real property recorded in inventory by EUR 4.6 million and the real property of
joint projects recorded under long-term financial investments by EUR 1.4
million. The downward revisions will affect the financial results of the
company for the 2011 12 months and IV quarter in the total amount of EUR 6.0
million, of which EUR 2.4 million is associated with the downward revision of
real property in Latvia, EUR 2.3 million in Estonia and EUR 1.3 million in
Lithuania. 

In 2011, the share of infrastructure facilities has grown, which has
significantly increased the impact of seasonality on the group’s quarterly
performance (EUR 26.2 million in Q1, EUR 48.9 million in Q2 and EUR 78.3
million revenue in Q3 compared to EUR 65.9 million in Q4 2011). The effect of
seasonality on the revenue of the company in Q4 2011 was mitigated by a winter
that was warmer than usual. The cyclical nature of development activities was
affected in Q4 by the sale of the Pallasti office building in the amount of EUR
3.2 million and the sale of apartments in the amount of EUR 5.9 million,
accounting for 32.6% of the annual sales from apartments. 

The consolidated revenue of the group’s largest entities:

                                           in thousand euros
-------------------------------------------------------------
                                       2011    2010     2009
Estonian entities                                           
AS Merko Ehitus (parent)            104 118  89 780  107 968
Tallinna Teede AS (100% ownership)   21 614  20 792   17 603
AS Merko Infra (100% ownership)      20 199     549        -
AS Gustaf (85% ownership)             3 243   2 598    2 820
OÜ Gustaf Tallinn (80% ownership)     5 013   3 451    3 907
AS Merko Tartu (66% ownership)        6 765   2 485    4 606
OÜ Woody (100% ownership)             1 577   3 941    1 598
Latvian entity                                              
SIA Merks (100% ownership)           41 754  43 169   59 181
Lithuanian entity                                           
UAB Merko Statyba (100% ownership)   13 340   4 432    4 532

In 2011, the group earned EUR 0.7 million gross profit, including EUR 0.4
million in Q4, from its development and construction activities. The gross loss
for the group, inclusive of discounts, was EUR -3.6 million, including EUR -4.0
million in Q4. 

In 2011, the administrative and general expenses of the group decreased by
8.3%, and the proportion of the said costs with respect to revenue dropped from
9.7% in Q1 to 4.6% year-on-year. 

The group’s loss before taxes for 2011 was EUR 13.0 million, with a net loss of
EUR 13.4 million – in 2010, the group had a profit of EUR 1.8 million before
taxes and a net profit of EUR 1.2 million. The reason for the loss was the rise
in construction costs that outpaced the projections with respect to contracts
concluded in 2009/2010 and the discounts, in Q4, of development projects,
resulting from the slow recovery of the Baltic real estate market and from the
rise in construction costs, in the amount of EUR 6.0 million. As of 31.12.2011,
the group had allocated a total of EUR 3.5 million as appropriations to cover
the costs of completing loss-making projects. 

In 2011, the change in short-term investments, and cash and cash equivalents of
Merko Ehitus group was EUR +6.0 million and as of 31 December 2011, the cash
and cash equivalents in the bank accounts and term deposits of the group were
in the amount of EUR 18.6 million. The cash flows from operating activities
totalled EUR -12.2 million, cash flows from investing activities totalled EUR
+6.2 million and cash flows from financing activities totalled EUR +12.0
million. The cash flows from operating activities in the reporting period were
mostly affected by the change in trade and other receivables related to
operating activities of EUR -30.3 million, change in trade and other payables
related to operating activities of EUR +15.8 million and operating loss EUR
-12.3 million. Of the cash flows from investing activities the balance of
issued and repaid loans totalled EUR +5.3 million and EUR +0,8 million interest
received. Of the cash flows from financing activities the balance of gained and
repaid loans totalled EUR +15.5 million, dividends paid EUR -1.8 million and
EUR -1.7 million was spent on finance lease principal payments. 

The ratios and methodology for calculating the financial ratios describing the
group’s main operations 

                                                  2011    2010    2009
----------------------------------------------                        
Net profit margin                               -6,1 %   0,7 %   3,7 %
Profit before taxes margin                      -5,9 %   1,0 %   3,8 %
Operating profit margin                         -5,6 %   1,4 %   4,2 %
Gross profit margin                             -1,6 %   7,5 %  10,9 %
EBITDA margin                                   -4,6 %   2,8 %   5,3 %
Return on equity per annum                     -11,4 %   0,9 %   5,5 %
Return on assets per annum                      -6,4 %   0,6 %   3,1 %
Equity ratio                                    50,0 %  63,8 %  60,5 %
Current ratio                                      2,0     2,7     2,3
Quick ratio                                        1,0     1,1     1,1
General expense ratio                            4,6 %   6,4 %   6,3 %
Gross remuneration ratio                         7,6 %   9,3 %   8,8 %
Debt to assets                                  18,3 %  20,6 %  24,6 %
Accounts receivable turnover (days)                 59      44      44
Accounts payable turnover (days)                    56      35      29
Revenue per employee (thousand euros)              238     213     256
Average number of full-time employees (group)      920     809     794

Net profit margin: Net profit* / Revenue
Profit before taxes margin: Profit before taxes / Revenue
Operating profit margin: Operating profit / Revenue
Gross profit margin: Gross profit / Revenue
EBITDA margin: (Operating profit + Depreciation and impairment charge) / Revenue
Return on equity: Net profit*/Avg equity during the period*
Return on assets: Net profit* / Avg assets during the period
Equity ratio: Owners equity* / Total assets
Current ratio: Current assets / Current liabilities
Quick ratio: (Current assets – Inventories) / Current liabilities
General expense ratio: General expenses / Revenue
Gross remuneration ratio: Gross remuneration / Revenue
Debt to assets: Interest-bearing liabilities / Total assets
Accounts receivable turnover: Trade receivables / Revenue x 365
Accounts payable turnover: Payables to supplies / Cost of goods sold x 365
Revenue per employee: Revenue / Average number of full-time employees

* attributable to equity owners of the parent

Employees and remuneration

The number of group’s employees decreased by 6 (-0.7%) employees and as of
31.12.2011, the group had 917 employees. The gross remuneration paid to
employees in 2011 amounted to EUR 16.7 million an increase of 4.4% compared to
previous year. Salaries accounted for 84.6% of the gross remuneration, and
performance-related pay accounted for 15.4%. 

Change in structure

At the Supervisory Board meeting on December 2, 2011, the Supervisory Board and
the Management Board of AS Merko Ehitus decided to change the management
structure of the group and pursuant to the decision of the Supervisory Board of
AS Merko Ehitus dated December 30, 2011 all the construction activities of the
group in Estonia were transferred to AS Merko Ehitus Eesti as of 1 January
2012. The technical completion of the transaction is planned to be realised
gradually during the first half of the year 2012. The objective of the changes
is to separate the management of the group and the production activities in
Estonia and to achieve more efficient distribution of resources between the
business areas of the group. 

After the completion of the changes, AS Merko Ehitus will operate as a holding
company, who will not be carrying out any independent production activities and
which holds the 100% participations of the construction companies AS Merko
Ehitus Eesti, SIA Merks and UAB Merko Statyba, as well as the real estate
development business unit of the group together with its companies that own
real estate (incl. OÜ Woody, OÜ Constancia, OÜ Metsailu). The main activities
of the holding company will be the development and implementation of the
strategies of the different companies of Merko Ehitus group primarily through a
long-term planning of resources. 

As of 1 January 2012, the Chairman of the Management Board of AS Merko Ehitus
will be Andres Trink. Viktor Mõisja and Alar Lagus will continue as Members of
the Management Board of AS Merko Ehitus. The Supervisory Board of the company
will continue in the same membership – Chairman of the Supervisory Board Toomas
Annus and members Tõnu Toomik, Teet Roopalu, Indrek Neivelt and Olari Taal. 

Members of the Supervisory and Management Board of AS Merko Ehitus

Supervisory Board

The general meeting of shareholders elects the Company’s Supervisory Board. The
Supervisory Board plans the Company’s activities and arranges its management as
well as performs supervision over the Management Board. The general meeting of
shareholders, held on 28 June 2011, elected an additional member (Mr Toomas
Annus) to the current Supervisory Board of AS Merko Ehitus. Thus, the
Supervisory Board of AS Merko Ehitus now has 5 members. 

Toomas Annus - Born on 5 October 1960. Finished Tallinn Technical School of
Building and Mechanics and graduated from Tallinn University of Technology,
majoring in industrial and civil engineering. Since 1987 the chairman of the
Management Board of EKE MRK, the predecessor of Merko Ehitus, since 1991 the
chairman of the Management Board of AS Merko Ehitus. In the years 1997-2008 and
again from June 2011 the chairman of the Supervisory Board of AS Merko Ehitus. 

Tõnu Toomik – Born on 8 March 1961. Finished Raatuse Gymnasium in Tartu (former
Tartu Secondary School no. 3) and graduated from Tallinn University of
Technology, majoring in industrial and civil engineering. From 1993, started to
work as a project manager at AS Merko Ehitus. Between 1997-2008, was a member
of the Management Board of AS Merko Ehitus, being responsible for the
management and development of the Company. From August 2008, is the member of
the Supervisory Board of AS Merko Ehitus. 

Teet Roopalu – Born on 30 August 1949. Finished Tallinn Secondary School no. 10
(current Nõmme Gymnasium) and graduated from the Faculty of Economics of
Tallinn University of Technology, majoring in construction economics and
organisation. Has worked at construction companies, including as a director of
finance, managed the economic activities in EKE (Estonian Collective Farm
Construction) system as a chief economist, as a bank director and has also been
involved in design work. Since November 2002, works at AS Merko Ehitus and is
responsible for the Company’s financial and legal areas. Is a member of the
Supervisory Board of AS Riverito and those of several subsidiaries and
associates of AS Merko Ehitus. 

Indrek Neivelt – Born on 17 March 1967. Finished a mathematics and physics -
biased class at Tallinna Secondary School no. 1 (current Gustav Adolf
Gymnasium), graduated from Tallinn University of technology, majoring in civil
engineering economics and management, and received his MBA in banking and
finance from Stockholm University. Between 1991-2005, worked in various
positions at Hansapank, over the last six years as the general director of the
group and chairman of the Management Board. From 2005, is a Chairman of the
Supervisory Board of Bank Saint Petersburg and is a member of supervisory
boards of several entities. From October 2008, is member of the Supervisory
Board of AS Merko Ehitus. 

Olari Taal – Born on 7 August 1953. In 1971, finished Varstu Secondary School
and in 1976, graduated as a civil engineer from Tallinn University of
Technology. Has managed Tartu Elamuehituskombinaat (Tartu Housing Plant; Tartu
Maja) and Eesti Hoiupank (Estonian Savings Bank). Has served the Republic of
Estonia as the Minister of Construction, Minister of Economic Affairs, Minister
of Internal Affairs and as a member of the 10th Riigikogu (Parliament of
Estonia). From October 2008, Olari Taal is a member of the Supervisory Board of
AS Merko Ehitus. 

Management Board

The Management Board is the Company’s governing body, which represents and
manages the Company. The Management Board shall adhere to the lawful
regulations of the Supervisory Board. The Management Board is under the
obligation to act in most economically purposeful manner. At the Supervisory
Board meeting on December 2, 2011, the Supervisory Board and the Management
Board of AS Merko Ehitus decided to change the management structure of the
group and as a result the Management Board of AS Merko Ehitus has 3 members as
of January 1, 2012. 

Andres Trink – Born on 1 February 1967. Finished the English-biased class of
Pärnu Secondary School no. 1 with honours and graduated from Tallinn Technical
University cum laude in the specialty of automated management systems. He has
studied international business administration in Estonian Business School and
graduated from the Advanced Management Program of the top managers of INSEAD
University in France. Has been working in different leading positions in the
private as well as public sector. Has been acting for the last 15 years in
financial sector, including as the member of the management board of Hansabank
Baltic banking. Since 1 January 2012 the chairman of the management board of AS
Merko Ehitus, being responsible for starting the structure and strategic
development of the new holding company. Also the chairman of the supervisory
board of AS Merko Ehitus Eesti, SIA Merks and UAB Merko Statyba. 

Alar Lagus – Born on 15 February 1969. Finished Rapla Secondary School and
graduated from the Faculty of Chemistry of Tallinn University of Technology,
majoring in organisation and technology of public catering. After graduation,
worked in various positions at Hansapank. From 2004, works as a manager in the
finance area and is responsible for the Company’s financial and managerial
accounting and investor relations. 

Viktor Mõisja – Born on 6 January 1951. Graduated as a civil engineer from
Tallinn University of Technology. Viktor Mõisja has worked at AS Merko Ehitus
since the foundation of the Company and most of the time as a manager of the
department of concrete works. From 21 December 2010, is a member of the
Company’s Management Board and his area of responsibility are quality
management and supervision. 

Construction market

Improvement of the economic environment of the Baltic countries in 2010 has had
a positive impact on the construction market in 2011. Volumes of construction
works completed by own forces have grown in all Baltic countries during the
year. In Lithuania, construction works in the total volume of EUR 1.90 billion*
were completed during 2011, meaning a growth of +27.4% compared to the previous
year, including +40.1% in Q4. In Latvia, construction works by own forces were
completed in the total volume of EUR 1.10 billion* during 2011, meaning annual
growth of +11.7%, including an increase of +28.1% in Q4. In Estonia, the 4th
quarter results of the construction market will be published on 29.02.2012. It
is reasonable to expect continuation of the trends of the last quarters. During
the first 9 months of 2011, construction works by own forces were completed in
Estonia in the total volume of EUR 1.04 billion*, i.e. +25.0% compared to the
result of the previous year (2011 Q3 respectively +31.8%). 

* in current prices

The construction market in the next few quarters will be affected by the
following trends: 

Compared to the beginning of the year, the confidence of private clients in the
region has declined, and because of that there is no interest in the
construction of new buildings/structures. Estonia’s transition to the euro has
not boosted the activity of foreign investments in the region significantly;
nor has it had the anticipated positive effect on the construction market. Now
as before, most of the new construction contracts come from the public sector,
funded out of the EU Structural Funds. 

The few clients (the State and local governments) remaining on the market are
enjoying their position, with requirements for contractors’ warranties and
payment terms toughening, the pressure on companies’ circulating capital
growing and the ability of companies to cope with the management of their
liquidity and cash flows becoming ever more decisive. 

Because of the high volatility of input costs, the budgeting of projects and
their completion within planned costs remain challenging and entail further
risk when construction contracts with fixed costs are performed. Whereas in the
first half of the year the fast rise in construction costs was absorbed by
contractors only, in the second half of the year the problem has reached the
awareness of clients, too. Ever more often, clients are cancelling their
invitations to tender, as submitted tenders to not match the budgets prepared
in 2009/2010, and the means allocated for funding the projects are
insufficient. 

Construction of new flats, experiencing a surge of activity in Tallinn and
Vilnius in the first half of the year, has clearly slowed down in the second
half. The rapid rise in the costs of construction inputs outpacing the selling
prices of apartments will pose a significant constraint on the launching of new
residential construction projects and affect the supply of housing negatively.
Due to the increased uncertainty in the economic environment, buyers of
apartments have assumed a wait-and-see attitude, taking their time when making
purchase decisions. Willingness by banks to finance development activities and
end purchasers of housing is good in Lithuania and Estonia and satisfactory in
Latvia. 

Uncertainty on the money markets of Europe and the USA has shaken investors’
confidence, and as a result a decline in the global demand for construction
services may be expected. Due to the decline in demand, a cheapening of global
inputs (steel and petroleum products) may be expected in the future, which may
briefly improve the profitability of construction contracts already concluded.
At the same time, this continued lack of clarity will pose a challenge to the
growth prospects of the construction sector in the medium term. 

Share and shareholders

Share information

ISIN                                         EE3100098328
Short name of the security         MRK1T
Stock Exchange List                   Baltic Main List
Nominal                                    no par value
Total no of securities issued        17 700 000
No of listed securities                 17 700 000
Listing date                               11.08.2008

The shares of Merko Ehitus are listed in the main list of NASDAQ OMX Tallinn
Stock Exchange. In 2011 3719 transactions with the shares of Merko Ehitus were
performed in the course of which 1.1 million shares were traded and the total
monetary value of transactions was EUR 8.0 million. The lowest share price was
EUR 4.90 and the highest price was EUR 10.65 per share. The closing share price
as of 31.12.2011 was EUR 5.40. AS Merko Ehitus market value as of 31.12.2011
was EUR 96 million. 

                                       31.12.2011  31.12.2010  31.12.2009
--------------------------------------                                   
No. of shares, thousand pcs                17 700      17 700      17 700
Earnings per share (EPS), in euros          -0,75        0,07        0,42
Equity per share, in euros                   6,21        7,05        7,68
P/B (share price to equity per share)        0,87        1,28        0,65

The main shareholders of AS Merko Ehitus as of 31.12.2011

                                                     Number of     Percentage of
                                                        shares             total
-----------------------------------------------                                 
AS Riverito                                         12 742 686            71,99%
ING Luxembourg S.A., clients                           974 126             5,50%
Skandinaviska Enskilda Banken Ab, clients              777 718             4,39%
Ergo Pensionifond 2P2                                  171 679             0,97%
State Street Bank and Trust Omnibus Account a          156 718             0,89%
 Fund No OM01                                                                   
Firebird Republics Fund Ltd                            139 054             0,79%
Gamma Holding OÜ                                       137 957             0,78%
SEB Elu- ja Pensionikindlustus AS                      125 520             0,71%
Clearstream Banking Luxembourg S.A. clients            107 330             0,61%
AS Midas Invest                                        102 805             0,58%


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
unaudited, in thousand euro

                                                                 2011       2010
                                                            12 months  12 months
                                                                                
Revenue                                                       219 322    171 919
Cost of goods sold                                          (222 928)  (159 105)
Gross profit (loss)                                           (3 606)     12 814
                                                                                
Marketing expenses                                            (2 104)    (2 193)
Administrative and general expenses                           (7 909)    (8 724)
Other operating income                                          1 611        961
Other operating expenses                                        (296)      (478)
Operating profit (loss)                                      (12 304)      2 380
                                                                                
Financial income and expenses                                   (718)      (610)
incl. financial income (expenses) from investments into       (1 120)      (398)
 associates                                                                     
and joint ventures                                                              
financial income (expenses) from other long-term                  973          -
 investments                                                                    
interest expense                                              (1 149)      (908)
foreign exchange gain                                             501        102
other financial income (expenses)                                  77        594
Profit (loss) before tax                                     (13 022)      1 770
Corporate income tax expense                                    (406)      (710)
Net profit (loss) for current period                         (13 428)      1 060
                                                           ---------------------
incl. equity holders of the parent                           (13 356)      1 229
non-controlling interest                                         (72)      (169)
                                                                                
Other comprehensive income (loss)                                               
Currency translation differences of foreign entities              351         23
Comprehensive income (loss) for the period                   (13 077)      1 083
                                                           ---------------------
                                                           ---------------------
incl. equity holders of the parent                           (13 005)      1 252
non-controlling interest                                         (72)      (169)
                                                                                
Earnings per share for profit (loss) attributable to           (0,75)       0,07
 equity                                                                         
holders of the parent (basic and diluted, in euros)                             


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
unaudited, in thousand euros

                                                                 2011       2010
                                                                   IV         IV
                                                              quarter    quarter
                                                                                
Revenue                                                        65 931     45 650
Cost of goods sold                                           (69 892)   (45 895)
Gross profit (loss)                                           (3 961)      (245)
                                                                                
Marketing expenses                                              (530)      (718)
Administrative and general expenses                           (1 935)    (2 329)
Other operating income                                          1 024      (255)
Other operating expenses                                        (195)      (217)
Operating profit (loss)                                       (5 597)    (3 764)
                                                                                
Financial income and expenses                                   (293)      (340)
incl. financial income (expenses) from investments into          (14)          -
 subsidiaries                                                                   
financial income (expenses) from investments into             (1 277)      (198)
 associates                                                                     
and joint ventures                                                              
financial income (expenses) from other long-term                  973          -
 investments                                                                    
interest expense                                                (393)      (250)
foreign exchange gain                                             397          6
other financial income (expenses)                                  21        102
Profit (loss) before tax                                      (5 890)    (4 104)
Corporate income tax expense                                    (168)         24
Net profit (loss) for current period                          (6 058)    (4 080)
                                                           ---------------------
                                                           ---------------------
incl. equity holders of the parent                            (6 027)    (3 972)
non-controlling interest                                         (31)      (108)
                                                                                
Other comprehensive income (loss)                                               
Currency translation differences of foreign entities              328       (13)
                                                                                
Comprehensive income (loss) for the period                    (5 730)    (4 093)
                                                           ---------------------
                                                           ---------------------
incl. equity holders of the parent                            (5 699)    (3 985)
non-controlling interest                                         (31)      (108)
                                                                                
Earnings per share for profit (loss) attributable to           (0,34)     (0,22)
 equity                                                                         
holders of the parent (basic and diluted, in euros)                             


CONSOLIDATED STATEMENT OF FINANCIAL POSITION
unaudited, in thousand euros

                                                       31.12.2011  31.12.2010
ASSETS                                                                       
Current assets                                                               
Cash and cash equivalents                                  18 510       9 856
Short-term deposits                                           140       2 651
Trade and other receivables                                64 449      44 938
Prepaid corporate income tax                                  686       1 366
Inventories                                                87 834      93 048
Total current assets                                      171 619     151 859
                                                                             
Non-current assets                                                           
Long-term financial assets                                 27 051      19 311
Deferred income tax assets                                  1 583       1 571
Investment property                                         2 313       3 585
Property, plant and equipment                              16 057      17 747
Intangible assets                                           1 427       1 508
Total non-current assets                                   48 431      43 722
                                                                             
TOTAL ASSETS                                              220 050     195 581
                                                      -----------------------
                                                                             
LIABILITIES AND EQUITY                                                       
Current liabilities                                                          
Borrowings                                                 16 574      12 554
Trade and other payables                                   61 635      39 154
Short-term provisions                                       5 769       3 674
Total current liabilities                                  83 978      55 382
                                                                             
Non-current liabilities                                                      
Long-term borrowings                                       23 764      13 185
Long-term trade payables                                      790         845
Long-term customer prepayments                                  -           1
Deferred corporate income tax liability                       131           -
Long-term provisions                                           66           -
Total non-current liabilities                              24 751      14 031
                                                                             
Total liabilities                                         108 729      69 413
                                                      -----------------------
                                                      -----------------------
                                                                             
Equity                                                                       
Non-controlling interest                                    1 356       1 428
Equity attributable to equity holders of the parent                          
Share capital                                              12 000      11 312
Statutory reserve capital                                   1 131       1 131
Currency translation adjustment                             (573)       (924)
Retained earnings                                          97 407     113 221
Total equity attributable to equity holders of parent     109 965     124 740
Total equity                                              111 321     126 168
                                                      -----------------------
                                                                             
TOTAL LIABILITIES AND EQUITY                              220 050     195 581
                                                      -----------------------



Andres Trink
Chairman of Management Board
+372 680 5400
[email protected]